Oil prices may remain on the boil amid strong demand, supply cuts

Saudi Arabia and Russia have announced a fresh extension to their voluntary supply cuts, amounting to a combined 1.3 million barrel per day (bpd) cut for another three months till December

Brent crude oil prices surged nearly 9 per cent in the past fortnight and topped $90 a barrel (bbl) on Tuesday for the first time since November 2022. Oil breached the $90 mark after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, amounting to a combined 1.3 million barrel per day (bpd) cut for another three months through December.

At 8.37 pm IST on Wednesday, Brent crude was trading slightly down at $89.5 a barrel. 

Analysts at Rabobank International expect the crude oil prices (Brent) to continue their journey north amid firm demand and restricted